Thanks for your replies.
Chris I gave that a shot, but am testing the site with Firebug & YSlow (dunno if
you've used them but it's a Yahoo thing that isolates slowdowns on page loads
and makes recommendations.
When I use:
location ~* \.(jpg|jpeg|gif|css|png|js|ico|html)$ {
access_log off;
expires 2d;
}
The expires header is not working.